Pakistan reserves rise after IMF inflow

International Monetary Fund has released fresh financial inflows worth $1.3 billion to Pakistan, pushing the country’s foreign exchange reserves above $17 billion and bringing the central bank closer to its reserve target for the next fiscal year.

According to the State Bank of Pakistan, the amount includes Special Drawing Rights (SDRs) worth 760 million under the Extended Fund Facility (EFF) and SDR 154 million under the Resilience and Sustainability Facility (RSF). The funds were received on May 12 and officially added to the country’s reserves on Wednesday.

The central bank’s reserves had stood at $15.85 billion at the end of April. Following the latest IMF inflow, reserves have increased to approximately $17.15 billion, moving closer to the SBP’s FY26 target of $18 billion.

Obama Criticizes Trump Over Iran Policy And Regional Tensions

Meanwhile, an IMF delegation led by Mission Chief Iva Petrova began a pre-budget review in Islamabad to assess Pakistan’s fiscal plans, revenue targets, taxation proposals and economic reforms for the 2026-27 fiscal year.

During meetings with Finance Minister Muhammad Aurangzeb, discussions focused on macroeconomic stability, structural reforms, export-led growth and fiscal discipline. The IMF also stressed the importance of maintaining reform momentum and ensuring long-term economic sustainability.

Officials said the government highlighted positive trends in exports and remittances while acknowledging ongoing challenges, including external debt liabilities and declining foreign direct investment.

Separately, Aurangzeb departed for Beijing to attend the launch ceremony of Pakistan’s inaugural Panda bond programme. The overall programme is valued at $1 billion, while the first issuance is expected to raise around $250 million with support from the Asian Development Bank and the Asian Infrastructure Investment Bank.